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DECISION No

DECISION No. 72/1999/QD-BTC OF JULY 9, 1999 PROMULGATING THE REGULATION ON THE SETTING UP, USE AND MANAGEMENT OF THE ACCUMULATION FUND FOR FOREIGN DEBT REPAYMENT

THE MINISTER OF FINANCE

Pursuant to the Government�s Decree No.15/CP of March 2, 1999 stipulating the tasks, powers and State management responsibilities of the ministries and ministerial-level agencies,

Pursuant to the Government�s Decree No.178/CP of October 28, 1994 on the tasks and organizational structure of the Ministry of Finance,

Pursuant to the Government�s Decree No.90/CP of November 7, 1998 promulgating the Regulation on the management of borrowing of foreign loans and repayment of foreign debts, and the approval of the draft Regulation on the accumulation fund for foreign debt repayment in Official Dispatch No.621/CP-QHQT of June 15, 1999,

At the proposals of the Director of the External Finance Department, the Director of the State Budget Department and the General Director of the General Department of Investment and Development,

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on the setting up, use and management of the accumulation fund for foreign debt repayment.

Article 2.- This Decision takes effect 15 days after its signing. The previous stipulations of the Ministry of Finance which are contrary to this Decision are now annulled.

Article 3.- The Director of the External Finance Department, the Director of the State Budget Department, the General Director of the General Department of Investment and Development and the heads of the concerned agencies and units shall have to guide and implement this Decision.

Minister of Finance
NGUYEN SINH HUNG

THE REGULATION ON THE SETTING UP, USE AND MANAGEMENT OF THE ACCUMULATION FUND FOR FOREIGN DEBT REPAYMENT

(Issued together with the Minister of Finance�s Decision No.72/1999/QD of July 9, 1999)

Chapter I

GENERAL PROVISIONS

Article 1.- The accumulation fund for foreign debt repayment (hereafter referred to as the accumulation fund) is set up to concentrate the recovered domestic capital amounts sublent from the Government�s foreign loans/aids and the governmental guarantee fee amounts, in order to secure the repayment of the Government�s foreign loans, and at the same time create a source for offsetting risks that may occur in cases where the Government guarantees the borrowing of foreign loans by enterprises and credit institutions.

Article 2.- The accumulation fund shall be entitled to open foreign currency and Vietnamese currency accounts at the Bank for Foreign Trade of Vietnam.

The Minister of Finance shall authorize leading officials of the External Finance Department to act as owners of the accumulation fund�s accounts.

Chapter II

SPECIFIC PROVISIONS

Article 3.- Sources formulating the accumulation fund:

1. The recovered sublent capital amounts, including:

- The principals and interests of amounts sub-lent from the Government�s foreign loans and aids (after substracting the sub-lending service charge) collected upon terms stipulated in sub-lending contracts or sub-agreements.

- The borrowing fees that must be paid to foreign countries (commitment fee, management fee,...) in cases where the State budget pays such fees to foreign countries under loan agreements.

2. The collected guarantee fee amounts and recovered debt amounts according to the Regulation on the governmental guarantee for foreign loans borrowings by enterprises and credit institutions.

3. The deposit interests and other proceeds from the use of the accumulation fund�s idle capital.

4. Other revenue sources as defined by the Government.

Article 4.- The accumulation fund revenues shall be collected as follows:

Basing itself on the written guarantee commitment, the agency providing the governmental guarantee shall request the guaranteed to remit guarantee fee directly into the accounts opened by the accumulation fund at the Bank for Foreign Trade of Vietnam.

On the basis of the sublending agreement or contract, the sub-borrower shall remit recovered sublent capital amounts into the accounts of the sub-lending agency. Basing itself on the term for repayments to the State budget under the authorization contract already signed with the Ministry of Finance, the sub-lending agency shall proceed with the procedures for repayments to the State budget into the accounts opened by the accumulation fund at the Bank for Foreign Trade of Vietnam, and at the same time proceed with the procedures for reducing sub-lending sources received from the State budget.

The sub-lending agencies and guarantee-providing agencies shall gather vouchers of remittances to the accumulation fund with certifications of the banks where such remittances are made, for the purpose of accounting the State budget collection and remittance. The copies of the above-said remittance vouchers shall be sent by the sub-lending or guarantee-providing agencies to the Ministry of Finance (the External Finance Department) for monitoring and accounting the collection and remittance.

Other revenues (if any) shall be remitted into the accumulation fund under the Ministry of Finance�s guidance.

Article 5.- The accumulation fund expenditures shall be made as follows:

The External Finance Department shall effect the repayment of the Government�s foreign loans (including loans borrowed for subsequent allocation and those borrowed for sub-lending) according to the current regulations, and at the same time have to separate the part of repayment of loans borrowed for sub-lending.

The External Finance Department shall sum up the repayments of loans borrowed for sub-lending arising in each month by the 5th day of the following month at the latest, and on such basis make vouchers of the accumulation fund�s expenditures as repayments to the State budget at the budget accounting exchange rate between Vietnam dong and a foreign currency on the day such repayments are made.

In cases where the repayments are made for projects with foreign loans guaranteed by the Government, the accumulation fund expenditures shall be effected the same way.

Article 6.- Drawing up plans for the accumulation fund revenues and expenditures

Annually, depending on the tempo of drafting the State budget, the sub-lending agencies shall have to base themselves on the sub-lending agreements already signed with the project owners to draw up plans for recovery of amounts sub-lent from the Government�s foreign loans and aids, then send them to the Ministry of Finance (the External Finance Department) for summing up plans for the accumulation fund revenues.

The External Finance Department shall base itself on the international agreements and the Government�s or the State�s commitments to determine the annual plans for foreign debt repayment from the Central Budget, in which the obligation to repay the loans borrowed for sub-lending shall be separated, so as to sum up the plans for the accumulation fund expenditures.

The annual plans for the accumulation fund expenditures shall be incorporated in the estimate of State budget revenues from the accumulation fund. The difference between the accumulation fund�s revenues and expenditures shall be used according to the Minister of Finance�s regulations.

Article 7.- Opening and management of the accumulation fund�s accounts

The External Finance Department shall carry out the procedures for opening the accumulation fund�s deposit accounts at the Bank for Foreign Trade of Vietnam in VND and USD (in cases where amounts in other foreign currencies arise, the Bank for Foreign Trade shall automatically open more accounts therefor) for monitoring the following sources of revenue:

- Recovery of sub-lent loans (including principals, interests and overseas fees),

- Collected governmental guarantee fee.

- Other revenues.

Interests arising on the accumulation fund�s deposit accounts shall be principalized and accounted into the account as "other revenues".

The Bank for Foreign Trade of Vietnam shall account the operations arising on the accounts related to the accumulation fund�s revenues and expenditures, and send a sum-up report each month to the Ministry of Finance on the total revenue and expenditure amounts in the month, as well as the interests arising on the deposit accounts and detailed balance thereof.

The Bank for Foreign Trade of Vietnam shall notify in detail the Ministry of Finance (the External Finance Department) of the opened accounts, so that the latter can guide the concerned units to remit money into appropriate accounts.

Article 8.- The difference between the accumulation fund�s annual revenues and expenditures may be used for the following purposes under the Minister of Finance�s decisions:

- Providing temporary loans to the State budget for its extraordinary expenditures with the minimum interest rate, so as to preserve the capital source for debt repayment.

- Providing term loans to the Development Support Fund.

- Purchasing foreign-currency bonds of the commercial banks.

Chapter III

THE RESPONSIBILITIES OF THE CONCERNED AGENCIES AND UNITS IN THE SETTING UP, USE AND MANAGEMENT OF THE ACCUMULATION FUND

Article 9.- The External Finance Department shall have to:

- Notify the concerned units of the serial numbers of the accumulation fund�s accounts opened at the Bank for Foreign Trade of Vietnam.

- Sum up and draw up annual plans on the accumulation fund�s revenues and expenditures.

- Effect the accumulation fund�s expenditures according to Article 5 of this Regulation.

- Determine the temporarily idle capital of the accumulation fund which may be used in each period, and coordinate with the concerned departments and bureaus in working out the plans on the use thereof then submit them to the Minister of Finance for decision.

- Account the accumulation fund, regularly making the comparison of the accumulation fund�s revenue amounts with the sub-lending agencies and the governmental guarantee providing agencies, and monitoring the recovery of the accumulation fund�s amounts already lent or used for purchase of foreign-currency bonds.

- Guide and urge the units and organizations provided with the governmental guarantee for their foreign capital borrowings to pay guarantee fee into the accumulation fund.

- Monthly report to the Minister of Finance on the fund remainder, and annually make reports on the settlement of the use of the accumulation fund.

Article 10.- The State Budget Department shall have to:

- Coordinate with the External Finance Department in proposing the plans for use of the temporarily idle capital amounts of the accumulation fund in each period to the Minister of Finance for decision.

- Conduct the State budget revenue-accounting of repayments to the State budget from the accumulation fund on the basis of the accumulation fund�s expenditure orders issued by the External Finance Department. Regularly compare the State budget expenditures for repayment of debts for sub-borrowing projects or projects guaranteed by the Government, with the revenues repaid by the accumulation fund.

Article 11.- The sub-lending agencies shall have to:

- Quarterly and annually notify the External Finance Department of the plans for recovery of debts from projects they are authorized to make the sub-lendings to.

- Organize the statistics, monitoring and making quarterly reports on sub-lent loans already recovered and remitted into the accumulation fund upon each sub-lending project, and send them to the Ministry of Finance (the External Finance Department).

- Guide and urge the units and organizations that use the Government�s sub-lent loans to repay such sub-lent loans fully and on time according to the provisions of the sub-lending sub-agreements or contracts.

- The commercial banks authorized by the Ministry of Finance to recover debts from the project owners and repay them directly to the foreign countries shall, after each debt repayment period, have to promptly notify the Ministry of Finance (the External Finance Department) thereof, so that the latter can carry out the procedures for debiting the accumulation fund and at the same time crediting and debiting the State budget.

Article 12.- The governmental guarantee providing agencies shall have to guide and urge the enterprises and credit institutions guaranteed by the Government for their capital borrowings to pay fully and on time the guarantee fee as well as recovered debt amounts (if any) to the accumulation fund.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 13.- The Departments, General Departments and concerned units under and attached to the Ministry of Finance shall have to abide by and guide the units and organizations which are sublent or guaranteed by the Government to strictly abide by the provisions of this Regulation. Any problems arising in the course of implementation shall be promptly reported by the concerned agencies, units and organizations to the Ministry of Finance for amendments and supplements suitable to the actual situation, in order to ensure that the accumulation fund is used efficiently and for the right purposes.

Minister of Finance
NGUYEN SINH HUNG